What was supposed to be the final day of the trade truce between the US and China, has now been extended by another 90 days. Markets did see this as something positive that the two biggest economies in the world are buying each other time to work out a path that will be beneficial for both parties involved. Suppression and containment would not good news for the world economy, as other nations would be affected of aggressive tariffs implemented between the nations leading to surpass prices on other trading members.
UK’s unemployment rate did stay at 4.7%, unchanged from its last month which market did review as something positive, seeing GBP strength in the morning session. While unemployment did not get worse, the situation might be worse than it seems. While job vacancies and people on payroll fell, suggesting a cooling job market. People in between jobs or job seeking might have not applied for job benefits and therefor don’t account for unemployed. This paints a different picture and with possibilities of rising inflation levels could leave households in more difficult challenges ahead.
This afternoon we wrap up today’s market releases with US core inflation. Forecast is that month-on-month we should see a level of 0.3%, which would be the third consecutive rise for the US. If figures come in as expected, we can see core inflation levels reach 3% year-on-year, which is above Federal Reserve’s target rate of 2%. Once figures has been released, we will have two speeches in the afternoon from Federal Reserve members.
GBP/EUR 1.1577 GBP/USD 1.3449 GBP/AED 4.9412
GBP/AUD 2.0727 GBP/CHF 1.0886 GBP/CAD 1.8551
GBP/NZD 2.2711 EUR/USD 1.1605 GBP/ZAR 23.8319